Premium users of food delivery platforms Eternal (formerly Zomato) and Swiggy will now have to pay a rain surcharge for food deliveries, according to in-app updates.
Both companies have removed the rain surcharge waiver from Zomato Gold and Swiggy One, their loyalty membership programs. After this development, Swiggy shares jumped as much as 3.46 per cent to Rs 327.20 apiece on the NSE. Similarly, shares of Eternal climbed up to 1.8 per cent to Rs 246.94 apiece.
Earlier, only non-premium users had to bear this surcharge and premium users were exempted from paying this additional charge.
Pressure To Improve Profits
This comes at a time when both the companies are facing pressures from investors to improve their profit margins. For the March 2025 quarter, Zomato reported a consolidated net profit of Rs 39 crore, a significant decline from Rs 175 crore in the same period last year.
Advertisement
Profits declined even as revenue increased 63.75 per cent to Rs 5,833 crore in Q4 FY25 from Rs 3,562 crore in the year-ago quarter.
Swiggy, which has not even achieved a full break-even point, is also facing margin pressures. The company's net loss for Q4 FY25 widened to Rs 1,081.18 crore from Rs 554.77 crore net loss in the year-ago period. Like Zomato, Swiggy's revenue jumped 45 per cent year-on-year (YoY) to Rs 4,410 crore for Q4. In the year-ago period, its revenue came in at Rs 3,046 crore.
Both companies are now looking for ways to increase their margins.
Zomato, Swiggy Share Price History
On an year-to-date (YTD) basis, Eternal's shares have declined over 11 per cent. Over the past year, it delivered 25.6 per cent returns. Swiggy's shares have declined over 40 per cent YTD and corrected nearly 30 per cent over the past one year.
